HB-5497, As Passed Senate, December 12, 2007
November 28, 2007, Introduced by Rep. Cheeks and referred to the Committee on Tax Policy.
A bill to amend 2000 PA 146, entitled
"Obsolete property rehabilitation act,"
by amending section 10 (MCL 125.2790), as amended by 2004 PA 251.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) There is levied upon every owner of a
rehabilitated facility to which an obsolete property rehabilitation
exemption certificate is issued a specific tax to be known as the
obsolete properties tax.
(2) The amount of the obsolete properties tax, in each year,
shall be determined by adding the results of both of the following
calculations:
(a) Multiplying the total mills levied as ad valorem taxes for
that year by all taxing units within which the rehabilitated
facility is located by the taxable value of the real and personal
property of the obsolete property on the December 31 immediately
preceding the effective date of the obsolete property
rehabilitation exemption certificate after deducting the taxable
valuation of the land and of personal property other than personal
property assessed pursuant to sections 8(d) and 14(6) of the
general property tax act, 1893 PA 206, MCL 211.8 and 211.14, for
the tax year immediately preceding the effective date of the
obsolete property rehabilitation exemption certificate.
(b) Multiplying the mills levied for school operating purposes
for that year under the revised school code, 1976 PA 451, MCL 380.1
to 380.1852, and the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, by the taxable value of the real and personal
property of the rehabilitated facility, after deducting all of the
following:
(i) The taxable value of the land and of the personal property
other than personal property assessed pursuant to sections 8(d) and
14(6) of the general property tax act, 1893 PA 206, MCL 211.8 and
211.14.
(ii) The taxable value used to calculate the tax under
subdivision (a).
(3) The obsolete properties tax shall be collected, disbursed,
and assessed in accordance with this act.
(4) The obsolete properties tax is an annual tax, payable at
the same times, in the same installments, and to the same officer
or officers as taxes imposed under the general property tax act,
1893
PA 206, MCL 211.1 to 211.157 211.155, are payable. Except as
otherwise provided in this section, the officer or officers shall
disburse the obsolete properties tax payments received by the
officer or officers each year to and among this state, cities,
school districts, counties, and authorities, at the same times and
in the same proportions as required by law for the disbursement of
taxes collected under the general property tax act, 1893 PA 206,
MCL
211.1 to 211.157 211.155.
(5) For intermediate school districts receiving state aid
under sections 56, 62, and 81 of the state school aid act of 1979,
1979 PA 94, MCL 388.1656, 388.1662, and 388.1681, of the amount of
obsolete property tax that would otherwise be disbursed to an
intermediate school district, all or a portion, to be determined on
the basis of the tax rates being utilized to compute the amount of
state aid, shall be paid to the state treasury to the credit of the
state school aid fund established by section 11 of article IX of
the state constitution of 1963.
(6) The amount of obsolete property tax described in
subsection (2)(a) that would otherwise be disbursed to a local
school district for school operating purposes, and all of the
amount described in subsection (2)(b), shall be paid instead to the
state treasury and credited to the state school aid fund
established by section 11 of article IX of the state constitution
of 1963.
(7) The officer or officers shall send a copy of the amount of
disbursement made to each unit under this section to the commission
on a form provided by the commission.
(8) A rehabilitated facility located in a renaissance zone
under the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681
to 125.2696, is exempt from the obsolete properties tax levied
under this act to the extent and for the duration provided pursuant
to the Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to
125.2696, except for that portion of the obsolete properties tax
attributable to a special assessment or a tax described in section
7ff(2) of the general property tax act, 1893 PA 206, MCL 211.7ff.
The obsolete properties tax calculated under this subsection shall
be disbursed proportionately to the taxing unit or units that
levied the special assessment or the tax described in section
7ff(2) of the general property tax act, 1893 PA 206, MCL 211.7ff.
(9) Upon application for an exemption under this subsection by
a qualified start-up business, the governing body of a local tax
collecting unit may adopt a resolution to exempt a rehabilitated
facility of a qualified start-up business from the collection of
the obsolete properties tax levied under this act in the same
manner and under the same terms and conditions as provided for the
exemption in section 7hh of the general property tax act, 1893 PA
206, MCL 211.7hh. The clerk of the local tax collecting unit shall
notify in writing the assessor of the local tax collecting unit and
the legislative body of each taxing unit that levies ad valorem
property taxes in the local tax collecting unit. Before acting on
the resolution, the governing body of the local tax collecting unit
shall afford the assessor and a representative of the affected
taxing units an opportunity for a hearing. If a resolution
authorizing the exemption is adopted in the same manner as provided
in section 7hh of the general property tax act, 1893 PA 206, MCL
211.7hh, the rehabilitated facility owned or operated by a
qualified start-up business is exempt from the obsolete properties
tax levied under this act, except for that portion of the obsolete
properties tax attributable to a special assessment or a tax
described in section 7ff(2) of the general property tax act, 1893
PA 206, MCL 211.7ff, for the year in which the resolution is
adopted. A qualified start-up business is not eligible for an
exemption under this subsection for more than 5 years. A qualified
start-up business may receive the exemption under this subsection
in nonconsecutive years. The obsolete properties tax calculated
under this subsection shall be disbursed proportionately to the
taxing unit or units that levied the special assessment or the tax
described in section 7ff(2) of the general property tax act, 1893
PA 206, MCL 211.7ff. As used in this subsection, "qualified start-
up business" means that term as defined in section 31a of the
single business tax act, 1975 PA 228, MCL 208.31a, or in section
415 of the Michigan business tax act, 2007 PA 36, MCL 208.1415.